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RCOM to acquire network equipment worth $600 million

22 Feb 2012 Evaluate

Reliance Communications (RCOM), India's biggest mobile phone carrier is likely to acquire network equipment worth $600 million from Huawei and ZTE as these two Chinese vendors assisted the telecom operator to secure loan from various Chinese banks. Earlier, RCom had announced an agreement with Export Import Bank of China, China Development Bank and Industrial and Commercial Bank of China for a loan of $1.18 billion.

The company is going to use the funds raised by the loan to repay its Foreign Currency Bonds (FCCBs) that are maturing in March. The loan, which has a seven-year maturity, bears 5% rate of interest. The actual loan will be $925 million.

Reliance Communications is India's foremost and truly integrated telecommunications service provider. The company has established a pan-India, next generation, integrated (wireless and wireline),convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages.

Reliance Comm Share Price

0.97 -0.01 (-1.02%)
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